7th Pay Commission: The central government employees should not pin high hopes on Modi government on hike in allowances and basic pay.
New Delhi, June 15: The Union Cabinet is expected to clear proposals related to higher allowances, under the 7th Pay Commission, by the end of this month. While the central government employees are hoping that their demands on hike in basic pay and higher allowances and arrears will be considered by Modi government, sources in the Finance Ministry said ‘there is no scope to change in higher allowances, which were recommended by the 7th Pay Commission‘. The central government employees have been waiting for the higher allowances as per the recommendations of the 7th Pay Commission since July last year.
If media reports are to be believed, the Empowered Committee of Secretaries (E-CoS), which screened the report of the Committee on Allowances is unlikely to suggest hike in allowances. The Committee on Allowances has reportedly stuck with the 7th Pay Commission’s recommendations on higher allowances. This means that the central government employees should not pin high hopes on Modi government on hike in allowances and basic pay.
The 7th Pay Commission had recommended a 14.27 per cent hike in basic pay for Central government employees, which is the lowest in 70 years, and suggested the abolition of 52 out of the 196 existing allowances, apart from subsuming 36 smaller allowances. However, the government formed Committee on Allowances, but is unlikely to make major changes in the recommendations of the 7th Pay Commission. Here’s what central government employees should expect from Modi government:
The central government employees have demanded that basic salary should be raised from Rs 18,000 to Rs 24,000 under the 7th Pay Commission. A report published in OneIndia portal claimed that the Empowered Committee of Secretaries (E-CoS) suggested salary hike in its report. But the government can reject the proposal of salary hike, if it’s been proposed by the E-CoS.
The central government employees should not expect any big announcement on higher allowances under the 7th Pay Commission as the Empowered Committee of Secretaries (E-CoS) hasn’t suggested any hike. Sources in the Finance Ministry also said that the quantum of allowances may not vary from those proposed by the 7th Pay Commission and the government is not bound by the findings of the Empowered Committee of Secretaries.
The E-CoS has suggested to keep the HRA rate at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively, as recommended by the 7th Pay Commission. The central government employees, however, demanded to retain HRA rate at 30 percent, 20 percent and 10 percent of Basic pay (pay in the pay band plus grade pay). A report published in the Financial Express said the HRA in cities with population above 5 million could be 27 per cent of the basic pay.
While the salaries of central government employees have been hiked as per the 7th Pay Commission, revised higher allowances haven’t been paid. The central government employees have demanded arrears on higher allowances as well, but the government neither accepted, nor rejected their demand. Shiv Gopal Mishra, chief of the National Joint Council of Action (NJCA), leading the 7th Pay Commission negotiations with the government, was unsure whether their demands about arrears on higher allowances under the 7th Pay Commission will be accepted.